Thread by @teamanalysis_

Ministry of Corporate Affairs (MCA) recently made amendments to the national Corporate Social Responsibility (#CSR) policy enshrined under the Companies Act 2013. The amendment has subscribed several changes to the provisions relating to CSR.

#Law #Policy #TAExplains #Explainer

However, one of the key changes made by the amendment is Impact Assessment. Company having the obligation of spending the avg CSR amount of Rs 10 cr or more in the 3 immediately preceding financial yrs in pursuance of Section 135(5) of the Act, shall undertake impact assessment.

#ImpactAssessment to be done by an independent agency and with respect to #CSR projects having outlays of 1 cr or more and which have been completed not less than one year before undertaking the impact study.

The impact assessment reports shall be placed before the Board.

The new amendment has also changed the definition of CSR from inclusive to exclusive. Instead of telling what includes CSR the definition now focuses on what is not CSR.

Activities like Normal Course of Biz, Outside India Activity, Political contribution will not be counted.

One more major change: Companies can now undertake CSR activities only through:

A company established under section 8 of the act; or
a registered public trust; or a registered society.

#CSRPolicy #CorporateAffairs #CompaniesAct